Netflix stock rose 2%, after the company announced that it lost fewer subscribers than expected in the second quarter.
According to Arabia Net, the company also added that it is in the process of unveiling a low-cost, ad-supported subscription segment in early 2023.
This comes on the heels of Netflix tapping Microsoft as its ad-supported offering partner.
"We will probably start in a handful of markets where advertising spend is significant," the company said in a letter to shareholders.
"Like most of our new initiatives, we intend to roll out, listen, learn and iterate quickly to improve our offerings, so in a few years our advertising business will likely look very different than it did on day one."
Netflix warned investors in the fourth quarter that it expected to lose about two million subscribers, but it only lost about 970,000 subscribers during the three-month period ending on June 30, according to CNBC, which was seen by Al Arabiya.net.
Here are the highlights of Netflix results:
Earnings per share: $3.20 compared to $2.94 per share, according to the average forecast of analysts on Refinitiv.
Revenue: $7.97 billion, compared to $8.035 billion, according to a Refinitiv survey.
- Net global paid subscribers: a loss of 970,000 subscribers versus a forecast of a loss of 2 million, according to StreetAccount estimates.
The company, which currently has 220.67 million subscribers, said it expects net additions to reach one million subscribers in the third quarter, reversing some of the losses it experienced during the first half of the year.
While analysts expected Netflix to lose 1.8 million subscribers.
On the other hand, the company warned of the impact of the strength of the US dollar on its international revenues, which constitute 60% of its net profits.
The dollar's rise comes at a time when the Federal Reserve raises interest rates to combat inflation, which recorded its highest levels in 4 decades in the United States.
Netflix shares, which traded around $700 last year, closed Tuesday at just over $200.
